INFRASTRUCTURE REPORT CARD AND JOBS IMPACT OF INCREASED INVESTMENTS

Transcription

1 Tip of the Infrastructure Iceberg First Unitarian Society Community Forum INFRASTRUCTURE REPORT CARD AND JOBS IMPACT OF INCREASED INVESTMENTS Carl C. Sutter, P.E., C.C.S., Vice President McMAHON Engineers/Architects and ASCE Region 3 Governor February 22, Products and images are for illustrative purposes only ASCE 1

2 What do ASCE s grades mean? A EXCEPTIONAL: FIT FOR THE FUTURE B GOOD: ADEQUATE FOR NOW C MEDIOCRE: REQUIRES ATTENTION D POOR: AT RISK F FAILING/CRITICAL: UNFIT FOR PURPOSE 2

3 GRADE SHEET: PREVIOUS GRADES The concept of a report card to grade the nation s infrastructure originated in 1988 with the congressionally chartered National Council on Public Works Improvement report, Fragile Foundations: A Report on America s Public Works. When the federal government indicated they would not be updating the report after a decade, ASCE used the approach and methodology to publish the first Report Card on America s Infrastructure in With each new report in 2001, 2005, 2009, and now 2013, the methodology of the Report Card has been rigorously assessed so as to take into consideration all of the changing elements that affect America s infrastructure. CATEGORY 1988* Aviation B- C- D D+ D D Bridges - C- C C C C+ Dams - D D D+ D D Drinking Water B- D D D- D- D Energy - - D+ D D+ D+ Hazardous Waste D D- D+ D D D Inland Waterways B- - D+ D- D- D- Levees D- D- Public Parks and Recreation C- C- C- Rail C- C- C+ Roads C+ D- D+ D D- D Schools D F D- D D D Solid Waste C- C- C+ C+ C+ B- Transit C- C- C- D+ D D Wastewater C D+ D D- D- D Ports C America's Infrastructure GPA C D D+ D D D+ COST TO IMPROVE - - $1.3 TRILLION $1.6 TRILLION $2.2 TRILLION $3.6 TRILLION *The first infrastructure grades were given by the National Council on Public Works Improvements in its report Fragile Foundations: A Report on America's Public Works, released in February ASCE's first Report Card for America's Infrastructure was issued a decade later. Investment Need Current Funding Funding Gap 3

4 What Can We Gain With Investment? Roads improved slightly from a D- to a D, largely reflecting improvements in pavement condition and significant reductions in highway fatalities. However, forty-two percent of America s major urban highways remain congested, costing the economy an estimated $101 billion in wasted time and fuel annually. While the conditions have improved in the near term, and federal, state, and local capital investments increased to $91 billion annually, that level of investment is still short of what is needed and projected to result in a decline in conditions and performance in the long term. 4

5 Roads ROADS: CONCLUSION Current investment trends are doing little to improve roadway conditions and may result in a decrease of conditions and performance. With each passing year the economic cost of underfunding maintenance and repair produces a mounting burden on our economy and increases costs to make improvements. While conditions have improved slightly, federal, state, and local governments, as well as the private sector, must work to develop sustainable and reliable revenue sources for our road network. The nation can no longer rely solely on the fuel tax to generate the necessary future revenues for the Highway Trust Fund. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Develop performance-based investment strategies which will ensure that available resources are directed to those projects with the highest performance return on investment Optimize usage of existing highway capacity to ensure the best use of available funding Encourage the use of asset management programs to provide for the most efficient use of maintenance and repair investment Use freight movement efficiency as a measure of the overall surface transportation system s performance and contribution to economic strength Increase investment from all levels of government and the private sector, to repair and improve the nation s highway systems Ensure the sustained sufficiency and reliability of the Highway Trust Fund by identifying and incorporating necessary additional revenue streams Continue the Highway Safety Improvement Program successes by investing in projects that will reduce injuries and fatalities Driving on roads in need of repair costs Wisconsin motorists $1.147 billion a year in extra vehicle repairs and operating costs - $281 per motorist. 71% of Wisconsin s roads are in poor or mediocre condition. Wisconsin has 114,843 public road miles. Wisconsin s highway vehicle-miles traveled in 2009 was approximately 10,440 per capita, ranking it 22nd in the nation. Wisconsin s gas tax of 32.9 cents per gallon has not been increased in 6 years. Wisconsin Report Card Grade (2007) D + 5

6 Aviation again earned a D. Despite the effects of the recent recession, commercial flights were about 33 million higher in number in 2011 than in 2000, stretching the system s ability to meet the needs of the nation s economy. The estimated cost of airport congestion and delays was about 22 billion in 2012 according to the Federal Aviation Administration. Major projects like NextGen promise to modernize our airport system, but they require full funding and planning to meet both near and long term needs. AVIATION: CONCLUSION The NextGen program, if fully and successfully implemented, promises to enhance air safety, create new efficiencies, and increase capacity. This would in turn save the airlines billions of dollars and alleviate the inconvenience now facing air travelers and goods on which this country is dependent. Meanwhile, an aviation system that was once the envy of the world is beginning to be overtaken by countries with ambitious investment programs for development of dozens of airports, and U.S. airports are no longer ranked among the world s best by air travelers. General aviation airports in the NPIAS program continue to be at risk, as funding for improvements and upkeep remains limited. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Accelerate efforts to modernize the nation s air traffic control system by implementing the NextGen to meet the 2021 deadline. Select a dedicated funding source for implementation of NextGen, such as the existing Aviation Fuel Tax. Avoid any new fees that would compromise the use of the system or public safety. Increase or eliminate the cap on the Passenger Facilities Charges (PFCs) to allow airports the flexibility to invest in their own facilities. Manage the Airport and Airway Trust Fund so as to maximize investment in the nation s aviation infrastructure and preclude its being used to pay for passenger screening or related security costs. Preserve the current budget firewalls to allow for full use of Airport and Airway Trust Fund revenues for investment in the nation s aviation transportation system. Congress should be proactive and reauthorize FAA programs prior to the September 2015 deadline. 6

7 Aviation There are 133 public-use airports in Wisconsin. Over two hundred million trips are taken daily across deficient bridges in the nation s 102 largest metropolitan regions. In total, one in nine of the nation s bridges are rated as structurally deficient. However, with the overall number of structurally deficient bridges continuing to trend downward, the grade improved to C+. However, the number in urban areas, which tend to carry the most traffic, is on the rise. 7

8 Bridges BRIDGES: CONCLUSION While the overall number of deficient bridges continues to decline, there is still a long road ahead. With the total number of structurally deficient or functionally obsolete bridges at more than 20%, the nation needs to remain focused on aging bridges and work diligently to decrease the total number to below 15% over the next decade. Most importantly, states will have to focus on repairing or replacing those large-scale bridges in urban areas where their upkeep has been consistently deferred due to the significant cost to repair these structures. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Make the repair of structurally deficient urban bridges a top national priority through the implementation of a risk-based prioritization model. Increase annual investment levels for bridge repair, reconstruction, and renovation by approximately $8 billion annually from all levels of government, to a total annual funding level of $20.5 billion. Develop a national strategic plan for addressing the nation s structurally deficient and functionally obsolete bridges in the upcoming decades, including long-term transportation research in order to develop more resilient bridges. Set a national goal to decrease the number of just structurally deficient bridges to 8% by 2020 and decrease the percentage of the population driving over all deficient bridges by 75% by ,157 of the 14,057 bridges in Wisconsin (8.2%) are considered structurally deficient. 779 of the 14,057 bridges in Wisconsin (5.5%) are considered functionally obsolete. Wisconsin received $18.3 million from the Federal Highway Bridge Fund in FY2011. Wisconsin Report Card Grade (2007) C 8

9 Transit remained unchanged in 2013 with a grade of D, as 45 percent of Americans still lack access to transit. Americans who do have access have increased their ridership 9.1% in the past decade, and that trend is expected to continue. Although investment in transit has also increased, deficient and deteriorating transit systems cost the U.S. economy $90 billion in 2010, as many transit agencies are struggling to maintain aging and obsolete fleets and facilities amid an economic downturn that has reduced their funding, forcing service cuts and fare increases. TRANSIT: CONCLUSION Americans continue to demonstrate their desire to have robust public transportation options, evidenced by increasing ridership and continued support of local and state-level funding issues. However, nearly half of Americans lack access to a good transit system, and transit agencies remain hard pressed to keep up with the demand of operating and maintaining the systems that exist. Continued investment in transit systems of all kinds is needed to support people s ability to access jobs and enjoy independent mobility as they age. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Increase access to transit in urban, suburban, and rural communities so that all Americans have more and better transportation choices Adequately fund maintenance of transit vehicles and facilities to keep systems in state of good repair and reduce life-cycle costs Continue federal investment in transit through a robust surface transportation program (authorization and appropriation) and a solvent Highway Trust Fund Require transit systems to adopt comprehensive asset management systems to maximize investments Include transit in state and local project development processes and metrics to track performance of transportation systems Local, regional, and state government entities especially in smaller urban and rural areas should prioritize transit investments that can enhance sustainable land-use decisions 9

10 Transit Wisconsin has 70,074 annual unlinked passenger trips via transit systems motor bus, heavy rail, light rail, and commuter rail. Wisconsin Report Card Grade (2007) C + Inland waterways once again remained a D- as conditions remain inadequate and investment levels remain stagnant. Our nation s inland waterways and rivers are the hidden backbone of our freight network they carry the equivalent of about 51 million truck trips each year. There are an average of 52 service interruptions a day throughout the system. Projects to repair and replace aging locks and dredge channels take decades to approve and complete. In fact, there is a backlog of major projects with estimated schedules stretching out to the year 2090 under current funding levels. 10

11 Inland Waterways INLAND WATERWAYS: CONCLUSION Inland waterways carry much of our nation s bulk cargo, but the system that stretches across the country is suffering from age and rapidly growing reliability issues. Barges are stopped for hours each day with unscheduled delays, preventing goods from getting to market and driving up costs. The length of time it takes to complete a single project is a growing issue. Without action, the costs of congestion and the inability to handle cargo loads efficiently and safely will continue to increase and have negative consequences on the nation s economic growth. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Establish a national freight strategy and policy that incorporate all modes of transportation, including waterways and ports, draw on successful state-level strategies, and include other key stakeholders such as shippers, retailers, and manufacturers Increase overall spending on inland waterways and secure additional financing for projects, either by increasing the barge fuel tax or implementing a user fee for the inland waterway system Prioritize capital projects according to risk and reliability, as well as economic return Wisconsin has 230 miles of inland waterways, ranking it 29th in the nation. 11

12 In 2012, Amtrak recorded its highest year of ridership with 31.2 million passengers, almost doubling ridership since 2000, with growth anticipated to continue. Both freight and passenger rail have been investing heavily in their tracks, bridges, and tunnels as well as adding new capacity for freight and passengers to the tune of $75B since In 2010 alone, freight railroads renewed the rails on more than 3,100 miles of railroad track, equivalent to going coast to coast. With high ridership and greater investment in the system, the grade for rail saw the largest improvement, moving up to a C+ in RAIL: CONCLUSION The railroads have invested heavily in their tracks, bridges, and tunnels, as well as adding new capacity for freight and passengers. While the freight railroads carry the majority of the responsibility for track upkeep, both freight and passenger railroads have made significant investments using both private and public funding. Intercity and commuter passenger ridership are showing year-over-year growth as a viable commuting option for dense urban areas. Meeting capacity demands will be an ongoing challenge as rail ridership and freight rail continue to gradually increase. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Integrate rail into a national multimodal transportation policy that recognizes and takes advantage of efficiencies in the movement of people and goods Improve passenger rail in dense urban corridor markets and as an alternative to air and automobile travel for intercity markets Increase and expand passenger rail commuter services in urban areas and intercity passenger services linking major cities in the nation s mega-regions Support a regulatory and financial environment that encourages continued private investment in the nation s freight railroad system 12

13 Rail Wisconsin has 8 freight railroads covering 3,387 miles across the state, ranking it 14th by mileage. Dams again earned a grade of D. The average age of the 84,000 dams in the country is 52 years old. The overall number of high-hazard dams continues to increase, to nearly 14,000 in The Association of State Dam Safety Officials estimates an investment of $21 billion is needed to repair these aging, yet critical, high-hazard dams. 13

14 Dams DAMS: CONCLUSION As our nation s dams continue to age and the size of the population protected by dams continues to increase, more people downstream are at a potential risk. Many state dam safety programs are operating with limited resources and authority, thereby reducing critical inspections and regulatory actions necessary to maintain the safety of dams. Additionally, the number of dams needing repair continues to grow, while the funding required also increases over time. Some modest gains have been realized by increasing the number of emergency action plans for highhazard dams and completing some dam safety repairs; however, a significant commitment from the federal, state, local, and private sector to America s dams is long overdue. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Reauthorize the National Dam Safety Program by 2014 and fully fund the program for each year under the reauthorization. Establish a national dam rehabilitation and repair funding program to cost share repairs to publicly owned, nonfederal, high-hazard dams. Develop emergency action plans for every high-hazard dam by Implement a national public awareness campaign to educate individuals on the location and condition of dams in their area. Encourage incentives to governors and state legislatures to provide sufficient resources and regulatory authorities to their dam safety programs. Require federal agencies that own, operate or regulate dams to meet the standards of Federal Guidelines for Dam Safety. Wisconsin s dam safety program has 6.25 Full-Time Employees that each oversee an average of state regulated dams. Wisconsin has 252 high hazard dams. 70% of the state regulated dams in Wisconsin have an Emergency Action Plan. Wisconsin s state dam safety program has an annual budget of $752,000. Wisconsin Report Card Grade (2007) C - 14

15 The grade for wastewater improved slightly to a D. Capital investment needs for the nation s wastewater and stormwater systems are estimated to total $298 billion over the next 20 years. Pipes represent the largest capital need, comprising three quarters of total needs. Stormwater needs, while growing, are still small compared with sanitary pipes and treatment plants. WASTEWATER: CONCLUSION Wastewater systems will incur growing costs over the next 20 years as they expand capacity to serve current and future growth. Other costs will result from stricter permitting standards, nutrient removal requirements, technology updates, and new process methods, among others. Beyond budget and financing options, the nation needs to consider multiple solutions to the wastewater infrastructure quandary. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Raise awareness for the true cost of water. Water is vital for our everyday life, but we pay much less for it than cable, or any other utility. Current water rates do not reflect the true cost of supplying clean, reliable drinking water. Replacing the nation s antiquated pipes will require additional local investment, including higher water rates. Reinvigorate the State Revolving Loan Fund (SRF) under the Clean Water Act by reauthorizing minimum federal funding of $20 billion over five years. Eliminate the state cap on private activity bonds for water infrastructure projects to bring an estimated $6 billion to $7 billion annually in new private financing to bear on the problem. Explore the potential for a Water Infrastructure Finance Innovations Authority (WIFIA) that would access funds from the U.S. Treasury at Treasury rates and use those funds to support loans and other credit mechanisms for water projects. The loans would be repaid to the Authority and then to the U.S. Treasury with interest. Establish a federal Water Infrastructure Trust Fund to finance the national shortfall in funding of infrastructure systems under the Clean Water Act and the Safe Drinking Water Act. Separate Potable and Nonpotable Water. A large portion of public supply water is used for watering lawns, flushing toilets, and washing clothes. These uses do not require potable water, but in most localities, all publicly supplied water is treated to meet federal drinking-water standards. It is becoming cost-effective for municipalities to construct separate lines for potable and nonpotable uses as water becomes scarcer and treatment more costly. 15

16 Wastewater Wisconsin has reported $6.4 billion in wastewater infrastructure needs over the next 20 years. Wisconsin Report Card Grade (2007) B - The grade for drinking water improved slightly to a D. There are an estimated 240,000 water main breaks per year in the US. While the quality of drinking water remains high, the pipes and mains are frequently more than 100 years old and in need of replacement. 16

17 Drinking Water DRINKING WATER: CONCLUSION America s drinking water systems are aging and must be upgraded or expanded to meet increasing federal and state environmental requirements that add to the funding crisis. Not meeting the investment needs of the next 20 years risks reversing the environmental, public health, and economic gains of the last three decades. In all likelihood, businesses and households will be forced to adjust to unreliable water delivery by strengthening sustainable practices employed in production and daily water use. The solutions already being put forward and implemented in the United States and abroad include voluntary limitations or imposed regulations governing the demand for water, as well as technologies that recycle water for industrial and residential purposes (e.g., using recycled shower water for watering lawns). These types of policies have reduced the demand for water and therefore have lessened the impacts on existing infrastructure. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Raise awareness for the true cost of water. Current water rates do not reflect the true cost of supplying clean, reliable drinking water. Replacing the nation s antiquated pipes will require significant local investment, including higher water rates. Reinvigorate the State Revolving Loan Fund (SRF) program under the Safe Drinking Water Act by reauthorizing minimum federal funding of $7.5 billion over five years Eliminate the state cap on private activity bonds for water infrastructure projects to bring an estimated $6 billion to $7 billion annually in new private financing to bear on the problem Explore the potential for a Water Infrastructure Finance Innovations Authority (WIFIA) that would access funds from the U.S. Treasury at Treasury rates and use those funds to support loans and other credit mechanisms for water projects. The loans would be repaid to the Authority and then to the U.S. Treasury with interest Establish a federal Water Infrastructure Trust Fund to finance the national shortfall in funding of infrastructure systems under the Clean Water Act and the Safe Drinking Water Act Wisconsin has reported $6.2 billion in drinking water infrastructure needs over the next 20 years. Wisconsin Report Card Grade (2007) C 17

18 The grade for solid waste improved in 2013, and it earned the highest grade of B-. In 2010, Americans generated 250 million tons of trash. The US recycles 34% of our waste, more than double the 14.5% in Per capita generation rates of waste have been steady over the past 20 years and have even begun to decline SOLID WASTE: CONCLUSION Innovative technologies and recycling efforts have proven successful in improving the safety, sustainability, and efficiency of the nation s waste disposal system. However, the continued under-use of waste-to-energy practices highlights the need for research and development of new policies and management practices. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Implement a comprehensive approach to waste management that reduces the volume of waste landfilled, increases the amount of materials recovered and recycled, and reduces the emissions of greenhouse gases from landfills Support the Environmental Protection Agency (EPA) s Resource Conservation Challenge (RCC) strategic plan, with goals of achieving the national recycling rate of 40% for municipal solid waste (MSW), beneficial use of secondary materials, priority and toxic chemical reduction, and reuse and recycling for electronics Encourage greater use of landfill gas to energy conversion to reduce greenhouse gas emissions and create new energy resources Allow the interstate movement of municipal solid waste to new regional landfills that meet all federal requirements Implement source reduction policies that call for better design, packaging, and life span of commercial products Develop national standards to promote proper, effective, and efficient collection and recycling of waste electronics Decrease the environmental impact of waste collected through use of renewable energy sources and optimize operation of waste collection vehicles 18

19 Solid Waste Number of landfills has decreased from 37 to 32. Average Landfill size has increased substantially. Approximately 20% of landfilled waste originates in neighboring states Wisconsin Report Card Grade (2007) B - The grade for energy remained a D+. America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 1880s. Investment in power transmission has increased since 2005, but ongoing permitting issues, weather events, and limited maintenance have contributed to an increasing number of failures and power interruptions. While demand for electricity has remained level, the availability of energy in the form of electricity, natural gas, and oil will become a greater challenge after 2020 as the population increases. 19

20 Energy ENERGY: CONCLUSION Looking ahead in the 21st century, our nation is increasingly adopting technologies that will automate our electric grid and help manage congestion points. In turn, this will require robust integration of transmission and distribution systems so that the network continues to be reliable. Investments in the grid, select pipeline systems, and new technologies have helped alleviate congestion problems in recent years, but capacity and an aging system will be issues in the long term. In addition, with an automated, dynamic energy grid system comes the increased risk of cybersecurity threats. Protecting the nation s energy delivery systems from cyberattacks and ensuring that these systems can recover is vital to national security and economic well-being. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Adopt a national energy policy that anticipates and adapts to future energy needs and promotes the development of sustainable energy sources, while increasing the efficiency of energy use, promoting conservation, and decreasing dependence on fossil fuels as sources are depleted. Such a policy must be adaptable and scalable to local and state policy. Provide mechanisms for timely approval of transmission lines to minimize the time from preliminary planning to operation. Identify and prioritize risks to energy security, and develop standards and guidelines for managing those risks. Design and construct additional transmission grid infrastructure to efficiently deliver power from remote geographic generation sources to developed regions that have the greatest demand requirements. Create incentives to promote energy conservation and the concurrent development and installation of highly efficient coal, natural gas, nuclear, and renewable (solar, wind, hydro, biomass, and geothermal) generation. Continue research to improve and enhance the nation s transmission and generation infrastructure as well as the deployment of technologies such as smart grid, real-time forecasting for transmission capacity, and sustainable energy generation which provide a reasonable return on investment. Wisconsin produces gigawatt-hours of renewable energy every year, ranking it 27th. Wisconsin Report Card Grade (2007) B 20

21 Schools received a D again this year. School construction has diminished to approximately half the level of funding seen previously. Almost half of America s public school buildings were built to educate the baby boomers a generation that is now retiring from the workforce. Yet while no national data on school facilities has been collected for more than a decade, estimates for investments to maintain our nation s school facilities is at least $270 billion or more. SCHOOLS: CONCLUSION With the significant decrease in school construction spending over the last four years and the increase in the number of facilities and the number of students attending those facilities, the lack of national and comparable data to assess the condition and capacity needs of school facilities is concerning. Even at the state level, often only a limited amount of information is collected from the school districts and a limited number of staff devoted to providing facility operators with asset management plans and project maintenance needs for the state. Databases and asset management plans outlining the condition of our nation s schools are essential to identifying issues systemwide and making efficient school facilities investments as they are needed. RAISING THE GRADES: SOLUTIONS THAT WORK NOW Publish regular updates of the report on the Condition of America s Public School Facilities to ensure a clear view of conditions nationwide Encourage school districts to adopt regular, comprehensive major maintenance, renewal, and construction programs Expand federal and state tax credits and matching funds to support increased use of school construction bonds and simplify the process for local school districts to obtain facility construction financing for improvements and modernizations Explore alternative financing, including lease financing and financing as well as ownership and use arrangements, to facilitate school construction projects Implement comprehensive preventive maintenance programs for each school district s assets to extend the life of school facilities Require life-cycle cost analysis principles and multi-use possibilities to evaluate the total costs of projects to capture efficiency and promote sustainability Encourage school facility reviews on a state level and provide input to develop a national database of conditions and available funding 21

22 Schools State View Public school districts in Wisconsin spent a total of $1.5 billion on capital outlays for school construction and acquisition of land and existing structures in fiscal years It is estimated that Wisconsin schools have $4.4 billion in infrastructure funding needs. Wisconsin Report Card Grade (2007) C 22

23 OVERALL Wisconsin Report Card Grade (2007) C 23

24 16 graded categories 50 state profiles 100+ infrastructure success stories Infrastructure news Category videos Products and images are for illustrative purposes only ASCE 24